Genco invest in two silver-gold mines

Genco Resources Ltd., has made a strategic investment in the ownership of two formerly producing silver-gold mines, Burgin Mine and Trixie Mine, and a concentrator plant, in Utah owned by Chief Consolidated Mining Company.

Brian Mountford, P. Eng., a director of Andover Ventures Inc. and an independent mining consultant, has been involved in the assessment of Chief’s assets for over the past two years. It is intended that Chief will continue to rely on his knowledge and experience with these assets. Mr. Mountford has advised Genco that, I believe this is an outstanding group of properties with high grade mineralization and large scale targets. I am looking forward to being involved on a ‘hands on’ basis with these assets as they are developed.

Genco’s acquisition was made through the purchase of approximately 65% of the outstanding shares of Chief, a US publicly traded company based in Eureka, Utah incorporated in 1909, from Chief’s largest shareholder, Dimeling, Schreiber & Park Reorganization Fund II, L.P. pf Philadelphia, Pennsylvania, for a purchase price of approximately USD ($) 4.9 million.

On closing, Genco’s Chairman, Robert C. Gardner, was appointed to Chief’s board of directors. As soon as the requisite US securities filings are made by Chief, it is intended that Genco will appoint a further two directors to Chief’s Board. Chief’s existing President, Richard R. Schreiber will remain as President and a director of Chief as will Steven G. Park. A third director resigned to make room for the appointment of Mr. Gardner.